Week 2 sefltest - Answers b and c are correct 3 Which of...

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Week 2: Financial Statements, Cash flows, Taxes and Risk - Self Quiz Hel p
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Script for displaying headers. Script to run spell checker. 1. Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet? (Points: 6) The company repurchases common stock. The company pays a dividend. The company issues new common stock. The company gives customers more time to pay their bills. The company purchases a new piece of equipment. 2. Kramer Corporation recently announced that its net income was lower than last year. However, analysts estimate that the company's net cash flow increased. What factors could explain this discrepancy? (Points: 6) The company's depreciation expense increased. The company's interest expense declined. The company had an increase in its noncash revenues. Answers a and b are correct.
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Unformatted text preview: Answers b and c are correct. 3. Which of the following statements is most correct? (Points: 6) Actions which increase net income will always increases net cash flow. One way to increase EVA is to maintain the same operating income with less capital. One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free. Answers a and b are correct Answers a and c are correct. 4. Branch Corp's total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets (Points: 6) 7.22% 7.58% 7.96% 8.36% 8.78% 5. Nikko's Corp's total common equity at the end of last year was $305,000 and its net income after taxes was $60,000. What was its ROE? (Points: 6) 16.87% 17.75% 18.69% 19.67% 20.66% Script to validate exam and submit....
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Week 2 sefltest - Answers b and c are correct 3 Which of...

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